Subcontractors Also Shortchanged In McNair Drama

10:52 PM, Sep 12, 2012   |    comments
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Undated -- Guilford County Schools fired Farley Associates Tuesday, siting the fact that Farley defaulted on several aspects of their contract to finish McNair Elementary on time.

But parents and students aren't the only ones who got the raw end of this deal. Many of the sub-contractors who worked on the project still haven't gotten paid for the work they completed!

Brandon Hill with Divine Electric said sub-contractors were told, "Talk to Farley they will pay you. Farley said that they weren't responsible for it. They took out names down and that was it."

Chris Hill, also with Divine Electric said he knew right away that McNair wouldn't be finished on the projected deadline. "I'm a 32-year commercial industrial electrician and the first time I walk on the McNair Elementary School job, I told the foreman I was working for that the job was never going to be completed in that date and time just by walking on the job and seeing just a part of it."

The Hills say they were promised help, and never got it. And people coming on and off the project slowed down the process. "Right before we got there, the superintendent on the job had got kicked off -- he left. So they had a new superintendent who was running around trying to find out what was going on, what was missing, what had been done, what hadn't been done."

Now they're just waiting on the bond surety agent's decision -- hoping they get paid for the work they already did.

The project has been turned over to The Hartford, Farley's bond surety company. Here's how the process works from here. According to the Small Business Administration, a surety bond is a type of insurance that guarantees performance of a contract. In this case, the bond is a payment bond, which guarantees suppliers and subcontractors will be paid for work performed under the contract. 

It also means that if the principal defaults, like Farley did, The Hartford can either find another principal to fulfill the contract or compensate the financial losses. It's up to The Hartford to decide.

WFMY News 2

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